 US
Prepares for Web
Gambling Hearing
US authorities have
promised a hearing
in early April to
explore the burden
on US financial
institutions to
comply with the
Unlawful Internet
Gambling Enforcement
Act of 2006.
The Act is intended
to deter illegal
internet gambling
activities, as
support for
legislation to
regulate internet
gambling continues
to gain momentum.
Congressman George
Miller signed up
last week as a
co-sponsor of the
bill introduced by
Congressman Barney
Frank, chairman of
the House Committee
on Financial
Services.
"The banks have a
lot of other things
to worry about right
now," said Frank,
referring to the
mortgage crisis and
other challenges. "I
do not think poker
should be one of
them."
Hundreds of comments
submitted to the US
Department of the
Treasury and the US
Federal Reserve are
understood to
highlight the
ambiguity in the
proposed rules to
implement the
Unlawful Internet
Gambling Enforcement
Act 2006.
One of the major
criticisms is that
the rules do not
clearly
differentiate
between legal and
illegal internet
gambling activities.
Concerns raised by
the American Bankers
Association and
others state that
the proposed rules
will be a compliance
trap and are not
likely to stop
citizens gambling
with foreign-based
internet gambling
operators.
"This hearing is
significant and must
address the issues
being raised by the
financial services
sector and others,"
said Jeffrey
Sandman, spokesman
for the Safe and
Secure Internet
Gambling Initiative.
"The proposed
Treasury Department
regulations are
unclear, burdensome
and untenable. It
becomes clearer each
week that the
attempt to prohibit
internet gambling
activity is doomed
to fail.
"Rather than waste
valuable resources
attempting to
enforce the Act, the
US should instead
regulate and tax
internet gambling."
The Act would
require licensed
operators to put in
place safeguards to
protect consumers,
and ensure that the
individual placing
the bet or wager is
physically located
in a jurisdiction
that permits a
particular form of
internet gambling.
US states would also
have the right to
control what, if
any, level of
internet gambling is
permissible within
their borders, and
could apply
additional taxes and
restrictions.
A companion piece of
legislation that
would ensure the
collection of taxes
on regulated
internet gambling
activities was
introduced earlier
this week by
Congressman Jim
McDermott.
The Internet
Gambling Regulation
and Tax Enforcement
Act of 2008
strengthens
provisions in an
earlier version of
the bill introduced
last year.
A recent letter sent
by Congressman
McDermott to fellow
members of Congress
stated that,
according to a tax
revenue analysis
prepared by
PricewaterhouseCoopers,
taxation of internet
gambling is expected
to generate between
$8.7bn to $42.8bn in
federal revenues
over its first 10
years.
----
Clement James,
VNunet
Originally published
to Gambling911.com
March 10, 2008 11:15
am EST
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